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SlurpeeDad
LIF Adolescent
Member since 1/11 713 total posts
Name:
SlurpeeDad
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Re: cost of living v income
Posted by fight the future
Just popping in to say that Suze Orman (love her) would tell you that YOU CANNOT AFFORD IT.
Rent for a little while longer and before you get pregnant or have that baby --- one of you (or both) go out and get a second job!!!!
Sell stuff on Ebay.
Babysit.
Do WHATEVER YOU CAN.
Stick it all off to the side.
THREE MONTH EMERGENCY FUND. OR ELSE.
 But seriously - that's what she would tell you.
DH and I live in a small one bedroom apartment. Same situation as you. He's a teacher -- I don't make much. But we are paying off all our credit cards and are determined to have a three month emergency fund saved up before we try to conceive. And then before we buy a house -- that will get even more boosted up.
Just because the market for houses has such 'good deals' doesn't mean it's a good deal for you guys... right now.
Suze actually says you need an eight month emergency fund.
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Posted 4/5/11 8:56 PM  |
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fight the future
Master of my domain.
Member since 3/10 2067 total posts
Name:
Rebecca
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Re: cost of living v income
Posted by SlurpeeDad
Posted by fight the future
Just popping in to say that Suze Orman (love her) would tell you that YOU CANNOT AFFORD IT.
Rent for a little while longer and before you get pregnant or have that baby --- one of you (or both) go out and get a second job!!!!
Sell stuff on Ebay.
Babysit.
Do WHATEVER YOU CAN.
Stick it all off to the side.
THREE MONTH EMERGENCY FUND. OR ELSE.
But seriously - that's what she would tell you.
DH and I live in a small one bedroom apartment. Same situation as you. He's a teacher -- I don't make much. But we are paying off all our credit cards and are determined to have a three month emergency fund saved up before we try to conceive. And then before we buy a house -- that will get even more boosted up.
Just because the market for houses has such 'good deals' doesn't mean it's a good deal for you guys... right now.
Suze actually says you need an eight month emergency fund.
 I know - that was me telling her 3 months... I didn't want to over Orman her.
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| Posted 4/5/11 8:57 PM |
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SlurpeeDad
LIF Adolescent
Member since 1/11 713 total posts
Name:
SlurpeeDad
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Re: cost of living v income
Posted by fight the future
I know - that was me telling her 3 months... I didn't want to over Orman her.
Ahh...I see. I like Suze, but sometimes she is a bit too much to handle. She screams about saving but then wants everyone to buy her books.
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| Posted 4/5/11 9:01 PM |
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fight the future
Master of my domain.
Member since 3/10 2067 total posts
Name:
Rebecca
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Re: cost of living v income
... she is intense.
And I mean -- that's most understated way I can possibly describe her.
And she's always so tan.
But I do love her.
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| Posted 4/5/11 9:06 PM |
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Re: cost of living v income
Posted by SlurpeeDad
Posted by fight the future
Just popping in to say that Suze Orman (love her) would tell you that YOU CANNOT AFFORD IT.
Rent for a little while longer and before you get pregnant or have that baby --- one of you (or both) go out and get a second job!!!!
Sell stuff on Ebay.
Babysit.
Do WHATEVER YOU CAN.
Stick it all off to the side.
THREE MONTH EMERGENCY FUND. OR ELSE.
But seriously - that's what she would tell you.
DH and I live in a small one bedroom apartment. Same situation as you. He's a teacher -- I don't make much. But we are paying off all our credit cards and are determined to have a three month emergency fund saved up before we try to conceive. And )then before we buy a house -- that
will get even more boosted up.
Just because the market for houses has such 'good deals' doesn't mean it's a ecgood deal for you guys... right now.
Suze actually says you need an eight month emergency
fund.
I agree with this. I really don't think you can afford it, there is no pressure quite like that of a homeowner..my friends are both attorneys and the wife got pregnant with twin boys..they decided to rent because they wanted tom save at least 25% of their savings for a downpayment...her husband ended up losing his job, and she couldn't work because 1 kid ended up being diagnosed with autism at
birth (fragile x syndrome).. The hubby couldn't land a job for a year and they blew thru half their savings..they thank god they never bought a house otherwise they would have to go into foreclosure! The hubby eventually did land a job (a year and half later at a firm paying well) but they are still renting right now until their savings increase to their pre-crisis levels and they have enough of a downpayment for a new home. They are looking for homes in Staten Island right now since their twins are already 3 years old and need a bigger house.
Sorry but with a child in the way, I would really be nervous about getting into a huge debt like a house/mortgage...unless of course you guys are buying it with just straight cash..
Message edited 4/5/2011 9:22:25 PM.
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| Posted 4/5/11 9:10 PM |
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maybebaby
LIF Adult
Member since 11/05 6870 total posts
Name:
Maureen
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Re: cost of living v income
If I lived my life based on what Suze Orman said, I would never do a thing, lol..(and i DO like her at times and agree with a lot of her advice but sometimes she is too much and unrealistic).
I think you can do it. I honestly do. Although I am a truly optomistic person who always tends to get by and do the best I can.
We don't really have extra money any of the time...but we make it work. Every year for us consists of putting every penny of DH's paycheck (i'm a SAHM) to mortgage and bills...we usually carry a low credit card balance (used to have zero but we did a few home repairs) and when tax time rolls around we pay off the credit card.
DH is going overseas for 6 months which will allow us to put away a large sum of $$. It will be hard while he is away but will be good in the long run.
I try not to worry too much. I love owning our home, we rented for a few years and it was time to buy even though Suze prob would have told us NO too. When there is a will, there is a way. DH would get a second job and I would work PT nights if we ever really found ourselves in an awful spot. We would get by.
I think you will be GREAT! So there is some positive vibes for you.. 
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| Posted 4/5/11 9:22 PM |
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jasmine
little boy blue <3
Member since 10/10 1475 total posts
Name:
x
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Re: cost of living v income
I am very financially conservative and wouldn't buy a house unless we had a solid emergency fund and either a large buffer in savings or knew we could quickly replenish our savings. Since you are already going through with the house I would just urge you to save as much as possible and consider taking on extra income-earning opportunities to build up as large of an emergency fund/savings fund as possible (especially before you have  ) and to hold off on all non-essential renovations and decorations until you have the savings/emergency fund.
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| Posted 4/5/11 9:48 PM |
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peanutbutter2
Carpe diem!
Member since 11/10 5287 total posts
Name:
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Re: cost of living v income
If you're going to be buying a house, there definitely needs to be some sort of savings or extra money. Little things come up alllll the time, as DH and I have learned in the past several months.
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| Posted 4/5/11 9:56 PM |
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ihilani
LIF Adolescent
Member since 9/07 858 total posts
Name:
alias
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Re: cost of living v income
Unless you're buying the house for all cash, it's not entirely up to you to decide if you can afford a house -- you'll need to find a mortgage, too. As much as it's a buyer's market, they're not extending credit like they used to.
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| Posted 4/5/11 10:03 PM |
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Re: cost of living v income
This is how we lived for a very long time. You do what you have to to survive and still have the things you want. We can't afford a home. We rent.
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| Posted 4/5/11 10:22 PM |
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twinkletoes807
Mommy's Girls! ♥
Member since 11/07 10116 total posts
Name:
Gabi
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Re: cost of living v income
Posted by KS13
I am constantly being told that we should be buying a home while the market is a buyers market etc etc. And truthfully, there is no way that I am backing out of the house that we are in contract for. I have taken into account all of the expenses of the home, a baby (that isn't even conceived yet  ) and our "spending" (i.e., fun) money. We have no consumer debt at all. We own our vehicles and have no credit card outstanding balances. I am I guess trying to convince myself that we can make it work..but now I'm scared 
Considering that you do not have a baby on the way right now, have no credit card debt, both you and DH have jobs, and have budgeted for the extras- I think you will be just fine in your new home. Take renovations slowly and do the most important things first. The fact is, living on LI is expensive- whether you are paying a motgage or paying someone else's mortgage by renting. Without all of the extras that many of us have to deal with, ie. credit card debt, daycare, child support payments- home ownership is definitely doable if you keep yourselves on a budget. Don't get me wrong, shiit happens and things need to be fixed, but odds are everything won't need to be done at once. Best wishes to you and DH on this exciting and stressful time. 
Message edited 4/5/2011 10:44:04 PM.
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| Posted 4/5/11 10:43 PM |
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Re: cost of living v income
Posted by KS13
You see its so funny though. I totally expected more people to say that yes they live paycheck to paycheck but they make it work somehow, etc etc.
I am constantly being told that we should be buying a home while the market is a buyers market etc etc. And truthfully, there is no way that I am backing out of the house that we are in contract for. I have taken into account all of the expenses of the home, a baby (that isn't even conceived yet ) and our "spending" (i.e., fun) money. We have no consumer debt at all. We own our vehicles and have no credit card outstanding balances. I am I guess trying to convince myself that we can make it work..but now I'm scared
I obviously don't "know" you, but if you were a friend of mine and we were having this conversation, I would say...don't BUY right now. There is nothing wrong with renting. Yes, I know it is a buyers market, but don't stress yourselves over that. Buy when you are able to have a little bit of a cushion.
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| Posted 4/5/11 11:32 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: cost of living v income
My advice is don't do both it once. Money is one thing but having kids is a big adjustment and if you are living paycheck to paycheck will be an added strain on your relationship. I say focus on the house, enjoy it for a little bit and let yourselves get adjusted to being homeowners before u rush right into having kids. Or if u really want kids right away then rent for a bit. I just think both at once will be to much but that is just me.
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| Posted 4/6/11 12:05 AM |
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itsbabytime
LIF Adult
Member since 11/05 9644 total posts
Name:
Me
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Re: cost of living v income
Posted by jasmine
I am very financially conservative and wouldn't buy a house unless we had a solid emergency fund and either a large buffer in savings or knew we could quickly replenish our savings. Since you are already going through with the house I would just urge you to save as much as possible and consider taking on extra income-earning opportunities to build up as large of an emergency fund/savings fund as possible (especially before you have ) and to hold off on all non-essential renovations and decorations until you have the savings/emergency fund.
I agree with this 100%. I would never buy a house that left me living paycheck to paycheck. But, then again, I have never lived paycheck to paycheck so, I am talking only out of fear, not out of knowledge.
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| Posted 4/6/11 1:33 AM |
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Re: cost of living v income
We bought in 08 and have only done the bare minimum in renovations. I think we have put MAYBE $10K into this house. Our kitchen still has the funky floral wallpaper from the 80's.
In any event, if people are hell-bent on buying a house, this is one of those life lessons they will learn after the fact how expensive it is going to be.
And yeah, I guess you do end up doing what you need to do to make it work, but hope every day nothing happens where one of you lose your income.
This is my fear and seeing what DH went through over the past year (he is in construction) really opened up my eyes to how close you can come to really losing it all.
We also had over a year of savings which I know is a lot for most people. Now we are down to a couple of months and my 401K/DS money that I refuse to touch. It's very, very, very scary how quickly that can go when you must pay a mortgage and ever-rising taxes.
Message edited 4/6/2011 6:05:04 AM.
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| Posted 4/6/11 6:01 AM |
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limommer
LIF Adult
Member since 2/10 1073 total posts
Name:
Meredith
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Re: cost of living v income
Mzsocialworker1 hit the nail on the head we were in a similar situation and although we pulled through it's a really bad place to be in WITH a child very scary!
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| Posted 4/6/11 8:12 AM |
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Linda1003
love my 2 boys
Member since 8/08 10923 total posts
Name:
Linda
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Re: cost of living v income
We live paycheck to paycheck to and are not even breaking even every month
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| Posted 4/6/11 8:32 AM |
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AidansArmy
LIF Adult
Member since 3/11 1292 total posts
Name:
Suzanne
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Re: cost of living v income
I bought my house almost 7 years ago, have three kids, and still live paycheck to paycheck. It is what it is. Living on Long Island is EXPENSIVE....at least we get a good tax return each year so that is our little forced savings account.
Good Luck!
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| Posted 4/6/11 8:32 AM |
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MaZz
* Lovin my baby girl!!! *
Member since 2/09 6243 total posts
Name:
Gina
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Re: cost of living v income
Honestly, would you be able to afford the house if the market went back up? I know I wouldnt have been able to... so I bought in Dec 09... Because owning was just so important for us...
I wouldnt try to do house and baby both at the same time though... Figure out whats more important right now and do only 1... My clock wasnt tickin and baby was the furthest thing from our minds at the time... Now that we're settled in... done decorating, etc... and know for a fact how much we spend on the home in any given month, we're planning the baby...
Take your time... dont rush into it all at once or I really think you could be up sh*ts creek without a paddle Of course, where theres a will theres a way, but do you really want to put such a massive strain on your marriage as well...
PS: I cannot tell you how many times DH & I fought once we moved it... bc sooo many projects needed to get done and we were at each others throats on a daily basis... If we had a child as well at that time, I think we'd be divorced 
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| Posted 4/6/11 8:37 AM |
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IrishLasss334
I'll be there soon!
Member since 1/08 6549 total posts
Name:
Patty
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Re: cost of living v income
I agree with pp's. I would not buy the house at this time. The unforseen expenses that come up might be a huge burden for you if you are living that close on the money. The first year we were in our house, (we bought a fixer upper) - our oil burner went ($3500), the refrigerator and the dishwasher.
That doesnt' even include needing new tires on my DH's truck at the time.
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| Posted 4/6/11 8:58 AM |
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annoyedTTCer
LIF Adult
Member since 4/09 3272 total posts
Name:
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Re: cost of living v income
If thinks are tight I have to stress that you get a fixed rate on your home.
yes an adjustable rate is lower right now but it can only go up, would you be able to handle a few hundred more being added to your payment?
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| Posted 4/6/11 9:18 AM |
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dpli
Daylight savings :)
Member since 5/05 13973 total posts
Name:
D
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Re: cost of living v income
Posted by mzsocialworker1
We bought in 08 and have only done the bare minimum in renovations. I think we have put MAYBE $10K into this house. Our kitchen still has the funky floral wallpaper from the 80's.
In any event, if people are hell-bent on buying a house, this is one of those life lessons they will learn after the fact how expensive it is going to be.
Same here. There are TONS of things I would LIKE to do to my house, but put it off because we have dealt with a major illness shortly after moving into our house.
We also bought a house we didn't think needed a lot of work, because we didn't want to be spending a ton of money right away on the house. In 3 years, even in a house that was in pretty good condition, we had to replace a hot water heater, the roof and we have a few things that really have to be done this spring.
I would tell you not to buy right now, given the situation you presented.
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| Posted 4/6/11 9:25 AM |
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KS13
Life is good.
Member since 6/10 1203 total posts
Name:
K
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Re: cost of living v income
We have a mortgage commitment with a fixed rate with a payment that is doable.
We will have a savings if we just do the bare minimum renovations.
I guess what is should have said in my original post was that we are definitely buying the house.
Thanks for all of the feedback.
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| Posted 4/6/11 9:30 AM |
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KS13
Life is good.
Member since 6/10 1203 total posts
Name:
K
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Re: cost of living v income
Posted by familyoffive
Posted by KS13
Maybe we will just do the mandatory make the house aesthetically livable renovations and chuck the rest of the money into savings..that should give us three months of expenses worth of savings sitting in the bank in case of emergency..the rest we can squirrel away when DH gets side jobs (he does construction on the side)...
I think this is a great idea! We put away about $100-200 a month just in case, which always gets spent on unexpected expenses! DH saves all of his tip money for extras. Right now we have put off doing a lot of stuff to the house that we would like to. It can be done. Don't get discouraged!
Thanks!!
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| Posted 4/6/11 9:35 AM |
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mom2mgn
Love my family
Member since 2/08 2267 total posts
Name:
Christine
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Re: cost of living v income
To answer your OP, no, you are not alone. However, if you have the chance, get out of it now! At least that's what I would hope someone would tell me if I was in your situation right now.
We do live paycheck to paycheck and for the past year or so, (we've been in our house 4 years), we've been regretting our decision - big time. If we could do it all over again, we would rent for a long time and put the money we were saving into savings so we could have an even bigger down payment. We put down 25% as it was but if we could have put down more and saved more, we'd be so better off right now.
So many things have happened to us in these past 4 years. You can't even imagine. There was no way to predict all the expenses we had.
I know you asked if others are in your boat and yes, we are but, it's not a fun boat to be in.
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| Posted 4/6/11 9:40 AM |
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